Testing the Effectiveness of Regulation and Competition on Cable Television Rates
AbstractRegulation of the cable television industry was marked by remarkable periods of deregulation, re-regulation, and re-deregulation during the 1980s and 1990s. Using FCC firm-level survey data spanning 1993 to 2001, we model and econometrically estimate the effect of regulation and competition on cable rates. Our calculations indicate that while regulation lowered rates for small system operators, it raised them for medium and large systems. Meanwhile, competition consistently decreased rates from 5.6 to 8.8 percent, with even larger declines during periods of regulation. Our results suggest that competition is more effective than regulation in containing cable prices.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 13-06.
Length: 37 pages
Date of creation: 2013
Date of revision:
Publication status: Forthcoming in Eastern Economic Journal
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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
More information through EDIRC
cable rates; regulation; competition.;
Find related papers by JEL classification:
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
- L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-09 (All new papers)
- NEP-COM-2013-11-09 (Industrial Competition)
- NEP-CUL-2013-11-09 (Cultural Economics)
- NEP-HME-2013-11-09 (Heterodox Microeconomics)
- NEP-IND-2013-11-09 (Industrial Organization)
- NEP-REG-2013-11-09 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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